In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Earl of Sandwich franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for an Earl of Sandwich franchise, based on Item 7 of the company’s 2020 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Earl of Sandwich franchise, based on Items 5 and 6 of the company’s 2020 FDD

• Section IV – Number of franchised and company-owned Earl of Sandwich outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of Earl of Sandwich’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2019 average, median, high, and low gross sales; and average, high, and low square footage for the 14 franchised Non-Traditional Restaurants that were open during the entire 2019 calendar year

Section I – Background Information

13 Things You Need to Know About the Earl of Sandwich Franchise

First Location Reopens After Initial COVID-19 Lockdowns – Founder Speaks About Changes

1.  In mid-May 2020, Disney Springs began its phased reopening and Earl of Sandwich announced that it was one of the restaurants on the premises reopening. In an email statement sent to Inside the Magic, it was announced that Earl of Sandwich at Disney Springs would be reopening on May 20 with operating hours from 11:30 a.m. to 9:30 p.m. The email also stated that the restaurant has implemented “many new safety and sanitation precautions to ensure the wellbeing of guests and staff as they reopen to the public.”

2.  Robert Earl, founder of Earl of Sandwich, has spoken out about how his restaurant group is handling the pandemic now that many states, including Florida and California, have launched reopening plans. In addition to the Earl of Sandwich restaurants at Walt Disney World Resort and Disneyland Resort’s Downtown Disney district, Earl Enterprises also operates numerous other restaurant chains, including Buca di Beppo, Bertucci’s, and Mixology Grill & Lounge. Earl also serves as chairman of Planet Hollywood Restaurants, Resort & Casino. There are Planet Hollywood locations at both Disney Springs and Disneyland Paris theme park’s Disney Village district.

3.  In an interview with Modern Restaurant Management, Earl provided insight into how his company’s restaurants have been coping with new health and safety regulations so far and what they intend to do to keep guests at their Disney Parks locations safe moving forward.

4.  Earl stated, “We streamlined our menus and altered our regular offerings to make them more appealing for the current situation. We are now offering beer and wine to-go (pickup only) at some of the restaurants where legal and where we have seen a demand.” It is likely that Disney Parks’ Earl of Sandwich and Planet Hollywood locations will continue to provide to-go and online ordering options as Disney Springs and Downtown Disney return to some semblance of normalcy following temporary closure.

5.  Earl went on to say, “We learn something new every day as this situation is changing all the time. We are learning more about what our guests’ needs are during this situation. We have found that our guests are looking for meals large enough to feed the whole family and/or have enough for leftovers. We have created family meal packages to make it easy and convenient for our guests to fulfill this request.”

6.  Earl provided Disney Park shopping district diners with a hopeful message at the end of his Modern Restaurant Management interview, saying, “I think that the whole restaurant industry is going to come together to show that once this is all over, it is safe to start dining out again. Whether we seat tables farther apart, make available more hand sanitizer stations and remain vigilant with our cleaning processes – we will demonstrate to our guests that it is ok to come back and dine with us.”

Brand Advantages of Becoming a Franchisee

7.  Earl of Sandwich leverages the Montagu family’s legacy as the inventors of the sandwich to draw in franchisees. Some of the other advantages of owning an Earl of Sandwich franchise include:

• Easy to operate;

• High-volume production capability;

• Small, efficient production line;

• Easily replicated for additional store growth;

• Inviting atmosphere;

• Traditional family recipes including fresh-baked artisan bread, fresh vegetables, generous slices of the finest cheeses, and delicious sauces;

• Delicious Artisanal Bread – using history as its guide, Earl of Sandwich created a proprietary artisan bread that was inspired by the first sandwich that was invented over 250 years ago;

• The Menu – Every sandwich is handcrafted and freshly baked to order. Over time, Earl of Sandwich’s menu has evolved beyond the sandwich to include freshly-tossed green salads, handcrafted wraps, freshly-baked desserts, and a variety of grab and go options.

8.  According to Earl of Sandwich, the ideal candidate has the following qualities:

• Financial Awareness – An ideal EOS franchisee will have at least $150,000 of liquid assets and a $250,000 net worth. As importantly, a franchisee should have the business acumen necessary to continually monitor sales and expenses to ensure long-term business success.

• People Person – Earl of Sandwich welcomes franchisees who are friendly, outgoing, and truly enjoy being around people. A respectful personality and great customer service skills are essential. Setting an example for your staff and treating them the way you want customers to be treated is crucial.

• Willingness to Learn – The brand support that comes with this franchise will provide continuous training and learning opportunities. Gaining valuable understanding from past experience and a willingness to apply the proven EOS system will contribute to the overall success of a franchisee.

• Motivated by Results – Ideal franchisees are overachievers. Earl of Sandwich franchises thrive when led by someone who is excited to go to work every day, enjoys challenges, and is self-motivated.

9.  Earl of Sandwich has a variety of formats to fit a franchisee’s specific needs. The company will help franchisees determine what the best option is for them in their market utilizing local real estate broker relationships and site selection software. Earl of Sandwich also provides franchisees with extensive support during the buildout by using its in-house resources as well as connecting franchisees with EOS’s preferred design, construction, and project management partners.

10.  Non-traditional models range between 600 and 1,000 square feet and include airports, travel centers, c-stores, food courts, office buildings, kiosks, malls, and college campuses. Earl of Sandwich also offers a non-traditional menu in certain cases. The traditional models range between 1,200 and 1,400 square feet and include end caps, in-line, and drive-thru.

Company History

11.  Earl of Sandwich was founded in 2004 by Orlando Montagu, his father John Montagu, who is the 11th Earl of Sandwich, and Robert Earl, the founder of Planet Hollywood, in Disney Springs in Orlando, Florida. The Montagus are direct descendants of the 4th Earl of Sandwich, who is credited with inventing/popularizing the sandwich around 1762. The current Earl of Sandwich and his son wanted to start a sandwich chain that uses fresh, high-quality ingredients.

12.  In 2005, Earl of Sandwich started franchising with its first franchised location opening in Sugar Land, Texas. Since then, Earl of Sandwich has grown slowly and there are now a few locations around the United States as well as one in Canada, one in Disneyland Paris, and a few in the Philippines.

Entrepreneur’s Franchise 500

13.  Earl of Sandwich did not rank on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Earl of Sandwich franchise costs, based on Item 7 of the company’s 2020 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Earl of Sandwich’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  19
• Outlets at the End of the Year:  20
• Net Change:  +1

2018

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  19
• Net Change:  -1

2019

• Outlets at the Start of the Year:  19
• Outlets at the End of the Year:  23
• Net Change:  +4

Company-Owned

2017

• Outlets at the Start of the Year:  9
• Outlets at the End of the Year:  11
• Net Change:  +2

2018

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  11
• Net Change:  0

2019

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  10
• Net Change:  -1

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

• The Statement of Average Gross Sales consists of the average annual Gross Sales of 14 franchised Non-Traditional Restaurants that were open during the entire 2019 calendar year.

• The Statement of Average Gross Sales excludes the results from: (a) three Franchised Restaurants that are not operated within a Non-Traditional Location; (b) six Franchised Restaurants that were not open during the entire 2019 calendar year; and (c) one franchised Non-Traditional Restaurant.

• The Gross Sales of Franchised Restaurants were derived from unaudited financial reports submitted by franchisees for the purpose of computing royalty fees.

• Gross Sales include all revenue from the sale of all food products, beverages, and all other income of every kind and nature related to the Franchised Restaurant (including the redemption value of stored value gift cards and gift certificates when purchases are made) whether for cash or credit and regardless of collection in the case of credit, monies or credit received from the sale of food and merchandise, from tangible property of every kind and nature, promotional or otherwise, and for services performed from or at the Franchised Restaurant, including, but not limited to, such off-premises services as catering and delivery.

• Gross Sales do not include sales taxes or other taxes collected from customers for transmittal to the appropriate taxing authority, promotional discounts and coupons, the value of any employee discounts provided to bona fide employees during the fiscal week in which the discounts are provided, all proceeds from the sale of gift certificates or stored value cards, customer refunds made in good faith to customers, or the sale of equipment used in the operation of the Franchised Restaurant.

• Some Earl of Sandwich Restaurants have sold this much. Your individual results may differ. There is no assurance that you’ll sell as much.

• The franchisor has not included the costs of sales, operating costs, or other costs and expenses for Earl of Sandwich Restaurants. Therefore, this financial performance representation does not reflect the costs of sales, operating expenses, or other costs and expenses that must be deducted from the Gross Sales figures to obtain your net income or profit.

• You should conduct an independent investigation of the costs and expenses you will incur in operating an Earl of Sandwich Restaurant. The franchisor recommends that you make your own independent investigation of the costs and expenses you will incur in operating an Earl of Sandwich Restaurant to determine whether or not an Earl of Sandwich Restaurant operated by you may be profitable. Franchisees or former franchisees listed in the Franchise Disclosure Document may be one source of this information.

• You should consult with an attorney and other advisors before signing the Franchise Agreement.

Statement of Average Gross Sales of Franchised Non-Traditional Restaurants for 2019